Lots of ￡10m may be small, but can be perfectly formed

摘要

It is great news when you read that a property-focused private equity-backed vehicle has raised a fund. But obtaining the money and then being able to spend it are two very different things. The amount of money available to be spent means that most of these big beasts will only look at lot sizes greater than ￡20m or even ￡50m. If you have raised ￡200m of equity and can secure 50% debt, then you need to spend ￡400m. The aim is to do 10 deals at ￡40m, rather than 40 deals at ￡10m.